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UKRAINE

Switzerland stops new banking business with Russians on EU sanctions list

Russian individuals and entities on a European Union blacklist will not be able to use Swiss banks to circumvent European sanctions against Russia over its invasion of Ukraine, Switzerland's Financial Supervisory Authority (Finma) said on Friday.

UBS bank branch sign in Lausanne
A branch of Swiss banking giant UBS in Lausanne. Fabrice COFFRINI / AFP

As of 6pm on Friday evening, financial intermediaries in Switzerland were prohibited from entering into new business relationships with the individuals and companies on the sanctions list, and must immediately report existing business relationships, Finma said in a statement.

“Further steps to strengthen these measures are currently being prepared,” Finma said.

Earlier, the Swiss government added to its watchlist 363 new Russian individuals and four companies that the EU had put on its sanctions list.

In 2020, Russian citizens had just under 10.5 billion Swiss francs in Swiss banks, according to Finews

Usually neutral
Switzerland is outside both the EU and Nato and has a long history of neutrality.

But while some have criticised Switzerland for not imposing its own sanctions and hiding behind this neutrality, there are other reasons, according to Livia Lieu, an official at the Federal Department of Foreign Affairs (FDFA).

She said that Switzerland exercises the role of “protective power “in certain international conflicts – for example, it represents Russian interests in Georgia, and vice versa.

Switzerland’s delicate role as intermediary would therefore be in peril if the country were to act against Russia.

“Our position, and above all my goal, is to leave the doors open so that we can do what most other countries can no longer do – keep the channels open between countries that no longer have diplomatic relations. Switzerland can provide this added value,” Swiss President and Foreign Minister Ignazio Cassis said at a news conference in Bern on Friday.

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UKRAINE

‘Limited capacity’: How the Swiss right wants to shut out western Ukrainian refugees

With about 51,000 refugees from Ukraine currently in Switzerland, right-wing politicians argue in favour of introducing geographic vetting in regards to who can qualify for Status S, saying Switzerland has "limited capacity" for refugees.

'Limited capacity': How the Swiss right wants to shut out western Ukrainian refugees

After Russia invaded Ukraine on February 24th, the Federal Council activated, for the first time ever, the ‘S status’ authorising Ukrainians and Ukraine residents fleeing the war to live temporarily in Switzerland.

The special status is initially valid for a year, but can be extended. Anyone who is still in Switzerland after five years receives a B permit.

Included is also the right to work, as well as free health care and language courses. The refugees also have the right to free public transportation, but this perk will end on May 31st, with no word yet whether it will be renewed.

READ MORE: Switzerland’s special ‘S permit’ visa program: What Ukrainians need to know

Now, however, “the great solidarity with refugees from Ukraine is cracking”, according to SonntagsZeitung, which reports that rightwing politicians in Switzerland are “beginning to question our country’s culture of hospitality”.

The right-wing Swiss People’s Party (SVP), which has consistently opposed sanctions on Russia, is calling on the government to limit the S status  only to Ukrainians who come from the eastern part of the country, which is currently most impacted by Russia’s invasion.  

This movement is spearheaded by MP Martina Bircher, who argues that Switzerland is reaching its limits in terms of the number of refugees it can accommodate and support, and it should therefore grant S status only to those fleeing the most conflict-ridden regions of Ukraine, like the eastern part.

Other right-of-centre groups are in favour of this “regionalisation” as well. Andrea Caroni, president of the centre-right Liberal Party, supports the idea of granting the special status based on the geographical evolution of the Ukrainian conflict, saying Switzerland “ultimately has limited capacity” to absorb refugees from Ukraine. 

He said, however, that such a measure “must be coordinated at the European level.”

Not everyone, however, agrees with Bircher’s proposal.

According to Gerhard Pfister, president of the Centre Party, adopting geographical limitations “would create two classes of Ukrainians. This is not right”.

It is unclear how the SVP would seek to draw barriers to distinguish between the east and west of the country. 

As for the Conference of Cantonal Directors of Social Affairs, vice-president Marianne Lienhard said the organisaton will discuss the proposal at its next meeting at the end of May.

Cantons are directly affected by the influx of Ukrainians, as they will eventually bear the cost of supporting the refugees — the cost which is currently borne mostly at a federal level.

The “NZZ am Sonntag” calculated that in 2022, the costs of housing, health insurance, and general support will amount to between 1.25 and 2.25 billion francs. In 2023, these expenses could climb to 7.5 billion.

“Fake” refugees

In an article she wrote for the SVP website, Bircher also argued that some refugees pretending to be Ukrainian actually aren’t.

As an MP from Aargau, she claims that out of 12 people who received the S status in a small town in her canton, only seven were Ukrainian nationals. The other five came from Africa.

Among them are  “Kenyan and Lebanese men who claim to have lived in Ukraine or who actually lived there before the war, but who do not have a Ukrainian passport”.

The S permit scheme does not only provide protection for Ukrainian citizens, but also citizens of other countries who live in Ukraine. 

While reserved predominantly for Ukrainians, the S status has also been occasionally granted to citizens of other countries. 

According to the State Secretariat for Migration (SEM), about 1,000 “other” refugees received this status as well, including 238 Russians, and  people from Germany, France, Italy, the United States, Canada and Australia.

In such cases, children have a different passport from their parents, but it is the parents’ nationality and place of residence that defines whether the status is granted.

So it could happen that the parents have Ukrainian passports, while their children are citizens of other nations.

READ MORE: Swiss MPs call for Russian money to be used to reconstruct Ukraine
 

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